NOTE 5 - STOCK OPTIONS AND WARRANTS

6 Months Ended

Dec. 31, 2014

Disclosure Text Block Supplement [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 5 - STOCK OPTIONS AND WARRANTS

General Option Information

On July 6, 2011, the Board of Directors cancelled the “2004 Non-Employee Directors’ Stock Incentive Plan” and approved the “Directors’ 2011 Stock Option and Award Plan”. The Company also maintains the 2005 Stock Option and Award Plan, which was previously approved by stockholders, for the purpose of granting option awards to its employees and consultants. Under the 2005 Plan, a total of 3,000,000 shares are authorized for issuance, and under the 2011 Plan, a total of 3,300,000 shares are authorized for issuance.

During the six months ended December 31, 2014, 100,000 options were granted. Additionally 140,000 options related to this transaction vested (20,000 options monthly May – November 2014 at $0.10); these options were granted to a consultant pursuant to a consulting agreement. Year to date expense related to these options is $12,022 as of December 31, 2014.

On December 1, 2014, 480,000 options were granted to the Company’s Chief Operating Officer as part of his employment offer. The options have a strike price of $0.10, vest December 1, 2015 and expire December 1, 2020. Year to date expense related to these options is $1,549 as of December 31, 2014.

We estimated the fair value of the stock options at the grant date based on the following weighted average assumptions:

Risk-free interest rate	1.190		–	1.345	%
Expected life	3.8		–	4.5	years
Expected volatility	147.43	%	–	152.40	%
Dividend yield				0.00	%

A summary of the status of our outstanding stock options as of December 31, 2014 and June 30, 2014 and changes during the periods then ended is presented below:

	December 31, 2014				June 30, 2014
	Shares		Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding beginning of period		1,754,000	$	0.17		1,904,000		$	0.23
Granted		620,000	$	0.10		150,000			0.08
Expired/Cancelled		-	$	-		(300,000	)		0.50
Exercised		-	$	-		-			-
Outstanding end of period		2,374,000	$	0.15		1,754,000		$	0.17
Exercisable		1,894,000	$	0.17		1,604,000		$	0.18

The following table summarizes the range of outstanding and exercisable options as of December 31, 2014:

		Outstanding						Exercisable
Range of Exercise Prices		Number Outstanding at December 31, 2014		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable at December 31, 2014		Weighted Average Remaining Contractual Life
$	0.08		150,000		6.92	$	0.08		150,000		6.92
$	0.10		620,000		4.96	$	0.10		140,000		4.96
$	0.17		650,000		4.92	$	0.17		650,000		4.92
$	0.17		400,000		5.92	$	0.17		400,000		5.92
$	0.17		400,000		5.92	$	0.17		400,000		5.92
$	0.29		154,000		0.50	$	0.29		154,000		0.50
			2,374,000						1,894,000

General Warrant Information

In September 2013, the Company obtained an extension on the remaining $100,000 secured convertible promissory note that was issued in the private placement that closed in September 2010. This note was paid off as of June 30, 2014. In exchange for the extension, the note holder received 500,000 common stock warrants and $6,500 in accrued interest and fees. The common stock warrants expire three years from the date of issuance, are exercisable at $0.13 per share, and vest on the next date the value of Amerityre common stock reaches $0.25 per share. As of December 31, 2014 the warrants have not vested.